How Can Apple Afford To Replace A Smashed iPhone 5 For Just $229?

After four years of owing an iPhone, Ishattered the screen for the first time.

It fell out of my jacket pocket as I started to ascend the Manhattan Bridge on my bike. One second I'm listening to a podcast, the next second, the only sound I hear is the thwack of my two-month old iPhone 5 hitting the ground.

Adding insult to injury, when a fellow biker who was trailing me picked up the phone and handed it to me, I pricked my finger on the broken glass.

The rest of my bike ride home I was bummed. I just kept thinking about how I was going to have to shell out $650 for a new phone. (I don't have Apple Care.)

When you buy a new iPhone for $200, the carrier sends another ~$450 to Apple. The carrier recoups the money through overpriced voice and data plans.

I was led to believe that buying a new phone meant saying goodbye to that $450 subsidy and I would have to cover the whole thing on my own.

Beyond the cost, I was also worried I couldn't get a new phone for days or weeks. Analysts have been saying iPhone 5 supplies have improved, but still, I had my doubts.

When I got home I spent thirty seconds looking at my broken iPhone screen and trying to convince myself I could live with it. I set up a Genius Bar appointment for that night. If I was going to spend $600 on a phone, might as well get it over with.

I arrived at the Apple store at 8 PM. It was packed. There was a Justin Bieber clone playing music at the store.

My appointment wasn't for another twenty minutes. I read Twitter through my cracked screen, being careful not to slice my finger open as I swiped.

My Genius was ready after just five minutes. I explained what was wrong with the phone.